Migration and resource misallocation in China

• 成果类型: Article
• 署名作者: Li, Xiaolu; Ma, Lin; Tang, Yang
• 署名单位: Nanjing University of Posts & Telecommunications; Singapore Management University; Nanyang Technological University
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2023.103218
• 发表日期: 2024
• 关键词: Misallocation; regional trade; Economic geography; Welfare gain

摘要

We structurally estimate the firm-level frictions across prefectures in China and quantify their aggregate and distributional implications. Based on a general equilibrium model with input and output distortions and migration, we show that the firm-level frictions are less dispersed and less correlated with firm productivity in richer prefectures. Counterfactual exercises show that reducing the within-prefecture misallocation increases aggregate welfare, discourages migration toward large prefectures, and reduces spatial inequality. Moreover, internal migration alleviates micro-frictions' impacts on aggregate welfare and worsens their effects on spatial inequality.